Update. The gap below filled to the tick. Now, I could try to act like I'm some trading genius who sold the high and bought the low tick, but trade calls and actual trading are two very different animals, so please don't confuse the two. Trading requires actual entries and exits in a live market which may move strongly against you before finally moving in the anticipated direction. For me, this week was a net loss. Profitable Monday, Tuesday, Wednesday, but with a relatively large losing day on Thursday as I misread the day and used a way too wide stop. Actually, I've been profitable all other days so far this year, but Thursday ate into a lot of that.
I definitely overtraded this week. sometimes I think there is something to setting targets and walking away from the computer so as to not sabotage the results.
ES seemed relatively quiet overseas. Although maybe I’m spoiled. After all ES did have a 26 point range. I’m short term bearish, but not committed. Especially in a relatively quiet market. I am looking at EUR for a correction to the upside from maybe 1.2000 to 1.2050, but no actual setup yet. Maybe best to take day off or see if any equities on my watchlist catch my attention. I’m bullish on railroads and trucking. Also looking for a correction to the upside for credit card issuers. Anyone else have any thoughts?
For me the question is does 50 get tested again, and does it hold? or do we continue higher here (and not look back) even in the face of uncertainty around wednesdays inauguration (stock market closed today for MLK though)
Oops. I apologize for my racist insensitivity! I’m guessing there will be peaceful demonstrations with no major incidents before, during, or soon after Inauguration Day. We closed near weekly lows and other risk based assets have been weak. At this point, I’ll take a sell signal on ES during the European Session targeting a new weekly low.
Another perspective. Weekly chart. Even though it's gradually rising, it's trading below the midline. Could mean the sign of exhaustion.
It looks like roughly once per quarter we get a wide red bar. It has been 12 weeks since the last big red bar. Maybe we are due.
Looking to buy ES at 3775 to 3780. Not in love with the idea because of concerns of “Buyer exhaustion” and unconvincing money flows towards other risk assets, but maybe Janet’s statements will be enough.